Life insurance is a promise by an insurance company to pay those who depend on you a sum of money upon your death. In return, you make periodic payments called premiums. Premiums can be based on factors such as age, gender, medical history and the dollar amount of the life insurance you purchase. We buy life insurance to help ensure our loved ones are taken care of financially. And life insurance rates are more affordable than you might think.
In life insurance, all or a portion of the death benefit that the policyholder may receive prior to death. The policyholder usually elects to receive living benefits during a terminal or catastrophic illness, especially one where health insurance does not cover all the bills. They are also called accelerated benefits.
Types of Life Insurance:
• Term insurance is often considered the lowest cost life insurance, and if your insurance need is only temporary, that may be true. Term insurance premiums stay the same for only a limited number of years, and increases in premiums can be substantial as you age. Term insurance generally does not offer the opportunity to accumulate cash value.
• Whole Life insurance offers guaranteed premiums, death benefit and cash value. Policy values have the potential to be enhanced through dividends paid by the insurance company.
• Fixed Universal life insurance offers a flexible premium with an adjustable death benefit, and credits a fixed interest rate to the cash value within the policy.
• Indexed Universal life insurance offers premium flexibility and an adjustable death benefit with the ability to earn interest based in part on the change in value of a major market index.
• Variable Universal life insurance offers premium and death benefit flexibility and offers the potential for market-type returns on cash value growth.
It really depends on your needs, and the better you understand the different types of insurance, the easier it will be for you to decide which type of policy is best for you. Before making a decision, be sure to discuss the details with our agents.